Skyline Investments Inc · TASE:SKLN
Skyline Investments — Investor Presentation (December 2020)
42 slides from Skyline Investments's investor presentation, Dec 31, 2020
Slide 1: Corporate Presentation
Corporate December 31, 2020 Presentation
Slide 2: Cautionary Statement
Cautionary Statement General This presentation has been prepared by Skyline Investments Inc. (the "Company") as a general presentation about the Company. This presentation is not intended to replace the need to review the formal reports published by the Company to the public on the Tel-Aviv Stock Ex
Slide 3: Skyline's Vision & Mission
Skyline’s Vision & Mission We’re creating one of North America’s leading hospitality real estate investment companies, with a focus on income producing properties. Skyline seeks to create shareholder value and deliver superior risk adjusted returns through the acquisition of income producing propert
Slide 4: Corporate Profile
Corporate Profile 18 Income Producing Assets 3,282 Guestrooms $638m/$256m Total Assets/Equity 40% Equity to Total Assets Ratio Baa1.il (Negative Outlook) Bond Rating 2,315 Units Available for Development
Slide 5: COVID-19
COVID-19 ▪ In March 2020, the World Health Organization declared COVID-19 to be a pandemic. In an effort to contain and mitigate the spread of COVID-19, many countries, including Canada and the United States, imposed unprecedented restrictions on travel, group gatherings and non-essential activities
Slide 6: 2020 Results
2020 Results COVID-19 interrupted Skyline’s revenue growth and The Company closed the sale of the Second Nature multi-year record EBITDA achievement project for CAD $28.9M and completed the sale of an additional investment property and land inventory Revenue from hotels and resorts decreased by 53%
Slide 7: Occupancy Levels Before and During COVID-19
Occupancy Levels Before and During COVID-19 Impact from COVID-19 began in March and occupancy appears to have bottomed out in April Canadian Resorts US Hotels Deerhurst and Horseshoe Resorts Select-Service Courtyard 13 Portfolio ▪ Resorts saw a decrease in YOY demand due to COVID-19, which was ▪ Ste
Slide 8: US and Canadian Government Stimulus Programs
US and Canadian Government Stimulus Programs Paycheque Protection Program (“PPP”) ▪ CAD $9.3M (US $6.7M) in cash was received during Q2 2020. As part of this program, the portion of any of these loans spent on payroll, utilities, interest and other specified costs may be forgiven by the US Governmen
Slide 9: Debt Composition and Maturities
Debt Composition and Maturities ▪ Bond A and B – Payments are current. As of December 31, 2020 (CAD’000) ▪ Bond A – Matures January 2023, can be repaid Weighted Average Term Maturity – 1.98 years 4% through obtaining a new property level 3% 5% 16% mortgage or sale of the asset in advance of Weighted
Slide 10: Expected Net Cash Flow from Vendor Take-Back Loans (VTB)
Expected Net Cash Flow from Vendor Take-Back Loans (VTB) VTB Loans (CAD’000)1 2021 2022 2023 2024 Total Second Nature2 612 729 12,908 - 14,249 Blue Mountain Retail - - - 3,800 3,800 Boathouses 3 & 4 3,037 - - - 3,037 Horseshoe Golf Course 1,496 - - - 1,496 Vetta Spa - - - 804 804 Total 5,145 729 12,
Slide 11: 2020 Cash Movement Summary
2020 Cash Movement Summary YE 2020 Cash Movement Summary (CAD’000) Opening Cash Balance 26,874 Operating Cash Flow (7,818) Capital Improvements (7,508) Repayment of Bonds (7,005) Proceeds from Long Term Loans, Net of Repayments 18,675 Other Movements Including FX (782) Ending Cash Balance 22,436 ▪ C
Slide 12: Share Price Discount to NAV
Share Price Discount to NAV ▪ NAV was 34.04 NIS per share compared to its share price on December 31, 2020 of 17.18 NIS ▪ Skyline's share price was trading at a 50% discount to its NAV as of December 31, 2020 (Skyline uses fair value accounting, therefore its NAV is equal to its Book Value at Decemb
Slide 13: Financial Strength and Flexibility
Financial Strength and Flexibility ▪ Total equity to total assets ratio of 40% ▪ Net debt to Net CAP1 ratio of 53% ▪ Cash balance of CAD $22.4M; approximately CAD $11.4M in additional restricted bank and other deposits that can be accessed in certain circumstances ▪ Additional cash flow of CAD $23.4
Slide 14: Business Strategy
Business Strategy Skyline’s Strategy Acquisition Targets Acquisition of hospitality properties to Focus on the US and Canada further decrease seasonality and diversify our geographic presence Stabilized in-place income Continued monetization of land assets to Strong potential growth less than 10% of
Slide 15: Portfolio Map
Portfolio Map 18 INCOME PRODUCING ASSETS | 3,282 HOTEL ROOMS | 18 CITIES IN THE US AND CANADA 15
Slide 16: Select Senior Management
Select Senior Management Blake Lyon CA, CPA Robert Waxman CEO CFO Blake Lyon has extensive experience in Robert Waxman has over 20 years of hotel and resort asset management in experience in accounting, finance, and Canada and internationally. Before real estate. Prior to his appointment, Mr. joinin
Slide 17: Current Ownership Structure
Current Ownership Structure 49.37% Alex Shnaider 1.53% 27.66% Public Blake Lyon 1.19% 20.25% ILDC 17
Slide 18: Summary of Periodic Results
Summary of Periodic Results CAD ‘000 2020 2019 2018 Income from Hotels and Resorts 91,484 193,585 185,534 Sale of Residential Real Estate 37,878 41,658 46,722 Total Revenue 129,362 235,243 232,256 NOI from Hotels and Resorts 11,359 42,214 41,551 Total Adjusted EBITDA 7,884 40,849 36,983 FFO (3,761)
Slide 19: Balance Sheet Highlights
Balance Sheet Highlights CAD ‘000, except where noted December 31, 2020 December 31, 2019 Total Assets 637,863 675,846 Gross Debt1 306,105 302,814 Cash and Equivalents 22,436 26,874 Net Debt 283,669 275,940 Shareholders’ Equity 226,044 252,374 Non-Controlling Interest 30,385 24,467 Total Equity 256,
Slide 20: Net Asset Value (in 000's CAD)
Net Asset Value (in 000’s CAD) Loan Balance Ownership BV NOI 2019 NOI 2020 LTV Equity December 31, 2020 Hotels and Resorts (1) Deerhurst Resort 100% 74,440 6,106 3,804 48,088 65% 26,352 Horseshoe Resort 100% 41,000 2,854 2,836 15,647 38% 25,353 Hyatt Regency Arcade 100% 63,903 5,736 (1,517) 22,966 3
Slide 21: Appendix
Appendix
Slide 22: Main Operating Assets in the United States
Main Operating Assets in the United States The Hyatt Regency Arcade, Cleveland, OH
Slide 23: Courtyard by Marriott Hotels
13 Courtyard by Marriott Hotels Courtyard Birmingham Hoover, Courtyard Manassas Battlefield Park Hoover, AL Manassas, Virginia Courtyard Toledo Airport Courtyard Fort Myers Cape Coral Courtyard Deerfield Arlington Heights Toledo, OH Fort Myers, FL Deerfield, IL
Slide 24: Courtyard by Marriott Hotels Properties Overview
Courtyard by Marriott Hotels Date of PROPERTIES Location Brand Management Service Level Acquisition OVERVIEW 9 States Courtyard by Aimbridge, Select Service November (USD) Marriott Urgo 14th, 2017 Number of Number of Acquisition Price Per Five Year Capital Credit Hotels Rooms Price Room Mortgage Lin
Slide 25: Courtyard Tucson
Courtyard Tucson Tucson Courtyard Renovations Before Renovation After Renovation 25
Slide 26: Hyatt Regency Arcade
HYATT REGENCY ENE, i) me) oO O — <x > Oo c i) 0 (3) [aa oa) Y oO > a5
Slide 27: Hyatt Regency Arcade
Hyatt Regency Arcade Improvements Overview ▪ Recently completed renovations of all rooms and meeting The historical Cleveland Arcade was built by John D. spaces. The renovation has improved the hotel’s Rockefeller in 1890 competitive advantage The hotel is an attractive event destination and hosts 6
Slide 28: Renaissance Cleveland Hotel
Renaissance Cleveland Hotel
Slide 29: Renaissance Cleveland Hotel
Renaissance Cleveland Hotel Overview Improvements Historical Heritage asset established in 1918 as The Cleveland Hotel ▪ Skyline completed the full HVAC replacement. This was the top complaint from hotel guests and is also expected to Notable visitors in the hotel’s history: Dwight D. Eisenhower, Ge
Slide 30: Bear Valley
Bear Valley SKYLINE BEAR VALLEY YLINE RESORT
Slide 31: Bear Valley
Bear Valley Overview Improvements A ski resort in Southern California, three and a half hours from ▪ Since the acquisition invested USD $3.2M in equipment San Francisco and improvements Acquired on December 2014 for US $3.7M from the Company’s ▪ In 2017 Skyline invested USD $5.5M on a new ski lift w
Slide 32: Main Operating Assets in Canada
Main Operating Assets in Canada
Slide 33: Deerhurst
Deerhurst SKYLINE
Slide 34: Deerhurst
Deerhurst Future Potential Overview World-class four-season resort located in Muskoka near ▪ Increasing NOI by streamlining operations Toronto, Canada ▪ Sold all 150 units at Lakeside Lodge. 91 units have joined the The new 150-room Lakeside Lodge was completed during hotel’s rental program2 2019 ▪
Slide 35: Horseshoe Resort
Horseshoe Resort A SKYLINE RESOR BARR
Slide 36: Horseshoe Resort
Horseshoe Resort Overview Improvements An all-season resort based around the Horseshoe Ski Mountain, ▪ Sold and delivered all 44 units at Slopeside Lodge one of the closest ski resorts to Toronto, Canada ▪ Skyline recently launched its new 68-unit Edge Condo development, which is already 55% pre-sol
Slide 37: Land Sales and Development
Land Sales and Development Edge Condos
Slide 38: Lakeside Lodge
Lakeside Lodge SKYLINE
Slide 39: Slopeside Lodge
Slopeside Lodge 39
Slide 40: Blue Mountain Development Lands
Blue Mountain Development Lands Second Nature Phase 3/4 Second Nature Phase 1 Snowbridge Townhomes 40
Slide 41: Asset Ownership Breakdown
Asset Ownership Breakdown Property Property Owner Manager Brand/Franchise Leased Deerhurst Skyline Skyline Independent None Horseshoe Valley Skyline Skyline Independent None Bear Valley Skyline Skyline Independent None Hyatt Regency Skyline Hyatt Hyatt Regency None Cleveland Marriott Renaissance Sky
Slide 42: Thank You!
Thank You! Questions? Please contact Rob Waxman | Chief Financial Officer 647-207-5312 | robw@skylineinvestments.com WWW.SKYLINEINVESTMENTS.COM
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